Washington: On December 4 Italians will vote over whether to accept Prime Minister Matteo Renzi’s flagship reform, which would drastically reduce the role of the Senate (upper house of parliament) and take powers back from regional governments. With Britain choosing to leave the European Union earlier this year and the surprise win of Donald Trump in the US presidential elections this month, Italy’s referendum could be the next test for Western voters that could likely shake up one of the world’s ten biggest economies.
Polls have given the ‘No’ camp a comfortable lead, but after Brexit and Mr Trump’s victory voters may be a bit wary of the numbers. If the Italian prime minister loses the referendum, it could bring his tenure to an abrupt and premature end. It could also have far-reaching effects. If Italians vote against the reform, the Italian premier has said he will step down from office ahead of the next 2018 general election. This would mean an early vote, delay in reforms and political chaos. According to Time magazine, a prolonged period of political instability could trigger a financial speculative attack and a risk of fuelling a financial crisis similar to the one of 2011.
Meanwhile, Italian populists and right-wing parties are already exploiting Mr Trump’s unexpected presidential victory. They claim it has lowered Mr Renzi’s chances of referendum success. “The U.S. elections have shown that a wind of change is blowing across both sides of the Atlantic and will soon wipe Renzi away. His time is over and Italy needs a new government,” Massimiliano Fedriga, a Lower House leader and a member of the “no” front, told th magazine.
